Coal Isn't Dead--It's Setting Records Again
India is also contributing to the upside, with coal demand forecasted to rise 1.3% this year. In total, the IEA estimates that global coal use climbed 1.5% in 2023 to a record 8.79 billion metric tonsup from its previous 8.77 billion-ton estimate. The agency noted that electricity demand globally is growing faster than new capacity from renewables like wind and solar, leaving coal to fill the gap. Even as governments push decarbonization goals, the shortfall in clean energy infrastructure is keeping the world's dirtiest fuel in play longer than many expected.
The IEA now sees a possible inflection point in 2026but the outlook hinges heavily on China. If demand there stabilizes or picks up again, the forecast could shift. For investors, that opens the door to both risks and opportunities across the energy and utility space. Traditional players like Peabody Energy (BTU) could benefit in the short term, while the broader electrification storyincluding players like Tesla (NASDAQ:TSLA)still depends on how quickly renewable generation can catch up. In the meantime, the market is watching China's next moves.
This article first appeared on GuruFocus.
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